5 years without burning an account in the crypto market is not due to luck or the divine K-line. It is the result of a method based on probability, risk management, and discipline like steel. When treating trading as a 'game of expectations', the market will no longer be a casino but transforms into a true 'ATM machine'. Below are three core principles that create long-term profits:
1. Wrap 'Bulletproof Vest' for Capital — Profits Must Have a Safety Valve
Most losing traders do not fail because they don’t know how to make money, but because they don’t know how to keep it. Profits made are then thrown back into the market, ultimately both capital and profits evaporate.
An effective capital management strategy is:
Set stop loss – take profit before entering a trade, never trade 'blindly'.
When profits reach about 10% of capital, withdraw 50% of the profit to a cold wallet or safe asset.
The remaining part continues to stay in the market for the growth target according to the compound interest model.
When the market rises, profits multiply. When the market falls, traders only lose part of the profit, while capital always remains steady in the safe zone. Maintaining the 'locking profits' principle regularly helps the account never fall into dangerous states even during strong fluctuations.
2. Build the 'Time Triangle' – Trading Three Timeframes Helps Capture Both Trends and Fluctuations
Trading by looking at only one timeframe is pushing oneself into a biased perspective. A more reasonable model is to use three combined timeframes:
Daily (D1): determine the main trend.
4H: determine the fluctuation zone – potential buy/sell area.
15M: choose an entry point accurately.
An asset can be traded in two directions, not depending on 'right – wrong', but based on the probability area:
Trend-following trades: enter when the price breaks a pattern or a significant zone according to D1, set stop loss at the nearest low/high.
Counter-trend trades in overbought – oversold zones 4H: take advantage of the market's natural retracement.
Common point:
→ Each trade should only risk about 1–1.5% of the account, but the profit target must be at least 5 times the risk.
When the market suddenly 'sweeps stops' strongly, traders do not panic — because there is always a possibility to profit on both sides if the trading structure is set up correctly.
3. Win Less Still Rich — The Secret Lies in Positive Expectation, Not Win Rate
Many people think that trading must win 70–80% to make a profit. But in reality, a system that wins only 30–40% can still generate huge profits, as long as the most important factor is controlled: RR ratio ≥ 5:1.
When one winning trade equals 5 losing trades:
Winning 3 out of 10 trades still makes a big profit
Winning 4 out of 10 trades is outstanding growth
It is mathematics, not emotions.
To maintain long-term positive expectations, there are three discipline principles that need to be ingrained:
• Divide capital into 10 parts, each trade only uses 1 part
Never go all-in. Keep a maximum of 3 positions at the same time to reduce the risk of strong market reversals.
• Losing two consecutive trades must stop trading
Take a break to cut the 'revenge trading' cycle, the most common cause of account burns.
• Each time the account doubles, immediately withdraw 20% to transfer to a safe asset
This is the 'second key' to protect your gains, preventing profits from turning into illusions on the screen.
Conclusion
The crypto market is extremely volatile, but it is also highly systematic for those who use probability, expectation, risk management, and discipline to face it. Making money in this market is not about proving oneself better than anyone else — but about surviving long enough for compound interest to do the rest.
No need to guess tops and bottoms, no need to stay up all night looking at charts. Just need a system capable of reducing risk – amplifying profit – with safety locks, the account will always move up sustainably.